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UK energy price cap could come into effect by Christmas 2018, Ofgem say UK energy price cap could come into effect by Christmas 2018, Ofgem says
(about 3 hours later)
A Government plan to cap the most common form of gas and electricity tariffs for millions of British households could come into effect in time for Christmas 2018, regulator Ofgem said on Wednesday. Energy regulator Ofgem has said that a plan that will give it the power to cap standard variable rate energy tariffs for millions of British households could be in place by Christmas this year.
Prime Minister Theresa May said in October she would impose controls to tackle what she called "rip-off energy prices" - home power bills have doubled in Britain over the past decade to an average of about £1,150 a year. In October, Prime Minister Theresa May  pledged to introduce legislation to end “rip-off” energy prices by putting a price cap on bills.
Dermot Nolan, Ofgem chief executive, said for the measure to take effect by Christmas it would have to receive royal assent - meaning it officially becomes law - before Britain's lawmakers break for summer recess on July 20. Speaking to a parliamentary select committee on Wednesday, Ofgem chief executive Dermot Nolan said that for a cap on energy bills to come into force by the end of the year it would need to become law before politicians and lords break up for the summer recess in July. 
He was speaking at a cross-party parliamentary committee.  
Once the law is passed, Ofgem would need to launch a statutory consultation process of around 50-60 days and then allow energy suppliers further time to implement the measure. Once that law is passed, Ofgem will need to launch a statutory consultation process of around 50 to 60 days, after which energy suppliers will be given a further grace period to implement the necessary measures.
Ofgem is charged with setting the cap on so-called standard variable tariffs (SVTs), the most commonly used deals, and the basic rate that energy suppliers charge if a customer does not opt for a specific fixed-term deal. The Business, Energy and Industrial Strategy Committee was questioning Mr Nolan as part of its pre-legislative scrutiny of the Government's draft bill to cap energy prices.
Data published by Ofgem in December showed among Britain's "Big Six" energy suppliers, SSE had the largest percentage of customers on SVTs at 71 per cent. Annual energy bills in Britain have reportedly doubled over the last decade, rising by about £1,200 per household.
British Gas, owned by Centrica, had 67 per cent of its customers on SVTs and E.ON had 61 per cent. Figures from Ofgem show that 57 per cent of households – or around 13 million – are on standard variable rate tariffs which are typically the most expensive. They are the basic rate that energy suppliers charge if a customer does not opt for a specific fixed-term deal.
Britain's other three main suppliers are EDF Energy , Innogy's Npower and Iberdrola's Scottish Power. Mr Nolan said that vulnerable customers had been failed by the system and admitted that Ofgem should have done more to help them earlier.
The Big Six are poised to become the Big Five, with SSE and Innogy planning to merge their retail power and gas operations. “I accept we should have done better with vulnerable customers,” he said.
Reuters Ofgem is introducing a safeguard tariff in February that will help protect around a million vulnerable customers from overpaying on their energy bills. The regulator has said that it plans to extend the scheme to two million more households next winter.
Data also published by Ofgem in December showed that among Britain's "Big Six" energy suppliers, SSE had the largest percentage of customers on SVTs at 71 per cent.
British Gas, owned by Centrica, had 67 per cent of its customers on SVTs and E.ON had 61 per cent.
The country’s other three main suppliers are EDF Energy, Innogy's Npower and Iberdrola's Scottish Power.
Additional reporting by Reuters